Definition, Examples & Resources:Position'
Frequently Asked Questions
Question: Is there a difference between "position" and "synthetic position"? Answer: Yes, there is a difference. A position can refer to anything. E.g. holding stock is a "position". However, an alternative method to closely mimic the behavior of another position is a "synthetic position". E.g., you may purchase stock, which is quite expensive or creates a synthetic long stock position with options contracts which is generally cheaper.
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